Landlords - Take Note re DEPOSITS

Do you know about the tenancy deposit cap coming into effect on 1 June?

You may be aware that on 1 June 2019, The Tenant Fees Act 2019 comes into force. A key part of this new legislation is that tenancy security deposits will be capped at the equivalent of 5-weeks' rent for assured-shorthold tenancies with an annual rent of up to £50,000, or 6-weeks' rent for tenancies with an annual rent of £50,000 or more.

These changes will apply to ALL new tenancies entered into from 1 June 2019, and any existing tenancies that are renewed on a fixed-term basis. It doesn't affect any tenancies signed before 1 June 2019 (irrespective of when the tenant actually moves into the property), although the change will apply to any future fixed-term renewals.

How this affects your existing tenancies:

When your tenant wishes to renew their fixed term tenancy after 1 June 2019, you will have to check their deposit does not exceed 5 weeks rent and if it does, you will have to ask the Deposit Scheme to refund the amount that the deposit is over by.